Professional Documents
Culture Documents
New Microsoft Office Word Document
New Microsoft Office Word Document
Share Share is nothing but the Ownership of the company divided into small parts and each part is called as Share or Stock. Share is also called by different names like equity, financial security and so on. A person carrying a share of a company holds that part of ownership in that company. A person holding maximum shares carry maximum ownership and designated like director, chairman etc. Share Market A Share market is the place where buying and selling of shares takes place. Now days due to internet and advanced technology there is no need to present physically in exchanges like NSE and BSE but in fact the buying and selling of shares can be done from anywhere, where there is a computer with internet connection. One should have a demat and trading account, computer and internet connection and he/she can start the share trading or investing from anywhere.
Stock exchanges
Mainly there are two exchanges in India. NSE (National stock exchange) - Nifty is listed with NSE. BSE (Bombay stock exchange) - Sensex is listed with BSE. NSE and BSE are countries economic barometer.
Rolling Settlement Cycle: (RSC) RSC means when you will get your shares in your demat account. In a rolling settlement, each trading day(T) is considered as a trading period and trades executed during the trading day(T) are settled on a T+2 basis i.e. trading day plus two working days. So the conclusion is on forth working day you will get the shares in your demat account. What is Demat account and why it is required? Securities and Exchange Board of India (SEBI) is a board of India appointed by the Government of India in 1992 with its head office at Mumbai. Its one of the function is helping the business in stock exchanges and in other security markets. In another word it is the regulator for stock exchanges. It monitors and regulates both stock exchanges in India. a) Demat (short form of Dematerialization) is the process by which an investor can get shares (also called as physical certificates) converted into electronic form maintained in an account with the Depository Participant (DP). b) DP could be organizations involved in the business of providing financial services like banks, brokers, financial institutions etc. DPs are like agents of Depository. c) Depository is an organization responsible to maintain investor's securities (securities can be shares or any other form of investments) in the electronic form. In India there are two such organizations called NSDL (National Securities Depository Ltd.) and CDSL (Central Depository Services India Ltd.) d) Investors wishing to open Demat account has to go DP and open the account. e) Opening the Demat account is as simple as opening the saving bank account with any bank. As you need bank account to save money, deposit cheques etc, likewise you need to have a demat account to buy and sell stocks in share market and to hold the shares. f) All shares what you own will show in your demat account, so you don't have to possess any physical certificates. All your shares are all held electronically in your demat account. As you buy and sell the shares, accordingly, your shares will get adjusted in your demat account.